Simmel adds increased firepower to Chemring Group's growth

Friday, 11th May 2007 --[ASDWire]-- Defence sector ascendant Chemring Group recently completed the acquisition of Italy’s Simmel Difesa SpA ordnance and munitions components business. The deal signifies another stage in the group’s consistent growth strategy - to build its countermeasures, munitions, pyrotechnics and EOD business into a leading global player within its dynamic and specialist niche market.

Importantly, the complementary fit and synergy between the two companies broadens Chemring’s scope and coverage across the market - not least as a core supplier to the major prime defence contractors around the world. The Group also gains access to a number of additional markets, including Italy, India and South America.

Chemring Chief Executive, David Price, says, “The acquisition of Simmel Difesa as part of the Chemring Group adds both critical mass and additional global reach to our business. It also provides increased production and capacity in a number of advanced, specialist areas, where Simmel is acknowledged as one of the leading players. Together, we will continue to build and integrate our activities as Chemring Group becomes further established as one of the industry’s key suppliers to the tier one prime contractors”.

Simmel, founded in 1948, is known traditionally for its large calibre ammunition, particularly for naval applications. More recently, it has broadened its activities to include medium calibre munitions, fuzes, propellants and missiles. Fuze maker, Borletti and the BPD explosives, ammunition and missile components business were incorporated during the 1990s. After a decade within the Fiat Group, the company was spun out in 2000 – and by 2006, was owned exclusively by Italy’s Maccagnani family.

Today, Simmel’s offering includes medium to large calibre ammunition for both naval and ground artillery, specialist ammunition, such as illumination mortar rounds, missile warheads and other components. Its primary facility at Colleferro has been supplemented recently by a second plant at Agagni, within which the Group will expand its ordnance disposal business.

In geographic terms, Simmel’s business divides almost equally between Italy, other NATO countries and a range of non-NATO affiliated markets around the world. Currently, it supplies around twenty navies and about half as many armies.

In response to evolving customer requirements, Simmel – and indeed, other companies within the Chemring Group, seek to provide an integrated, holistic, ‘whole of life’ munitions solution to primes and other customers. Typically, resources include every stage of the manufacturing process, from components and raw materials to finished product …from background research and development, through trials and testing – to ultimate end of life disposal.

Simmel’s product range includes munitions for both traditional and latest generation weapon systems, and for certain weapons, it is the sole supplier of qualified ammunition It has become a leader in the field of advanced proximity fuzes, designed to give higher protection against ECM, an improved detonating point and optimised system lethality. It is also engaged with extensive research and development of ‘insensitive explosives’, to satisfy growing demand for safety during handling and use.